Year in review: Food fight over hot dog carts

On the surface, it might have appeared nothing more than a dispute between a handful of business rivals, but 2009 will be remembered for the battle for the future of business in downtown Marion. On one side was free enterprise; on the other, concerns about competitive advantage, with local government caught in the crossfire.

In August, the Marion City Council decided to allow entrepreneurs to operate "mobile food vendor carts," in the downtown area on public sidewalks. The move was quickly challenged by established "brick-and-mortar" Main Street food and beverage vendors.

Mobile cart owners were required to operate entirely self-contained carts -- no drop cords or wires, were limited to daylight operating hours and must not block or hinder pedestrian traffic. Vendors had to obtain a "privilege permit" or license and pay an annual fee of $100 to do business.

Mike Ornberg, owner of the Crooked Door Coffee House, voiced his concerns at the next council meeting.

"Marion is a tough place to do business," he said. "We work on a very small profit margin." He said there are not enough potential customers downtown to keep existing businesses afloat while also supporting new ones.

The spark that ignited all the discussion, however, was this: Ornberg said he had about $600 per month in site expenses to keep his storefront open, far more than a mere $100 per year. And as a brick-and-mortar beverage vendor, he was required to provide restrooms for the public. A hot dog stand, on the other hand, did not have to provide such luxuries and conveniences.

Furthermore, Ornberg told the council that he and others thought the city had failed to consult the business community before making such a decision. This comment appeared to touch a nerve among the council.

Then-Mayor Everette Clark implied people have a responsibility to be aware of what is going on in local government.

"I thought everybody knew after three different meetings," said Clark. "It's almost impossible to hold everybody's hand and bring them in."

As The McDowell News reported in July and August, the council discussed the idea in August and later held a hearing to get public input about the proposed changes. No members of the public addressed the matter for or against the mobile carts at that hearing.

Clark said he used to run a clothing store on Main Street and had to deal with competitors as well.

"Did you have competitors rent a place for $100 a year?" asked Ornberg.

A few days later, the council heard from Bruce Brown, owner of Bruce's Fabulous Foods. He said pointedly that the $100 license fee for cart operators meant he and his fellow brick-and-mortar restaurateurs would face "unfair competition."

Then-Mayor Pro Tem, now mayor, Steve Little struck a conciliatory note, suggesting the council had always intended to revisit the issue in detail and added that he and his colleagues are capable of making mistakes.

A few days later, the council agreed to raise the cost of the license from $100 to $1,200 per year. The vote was 4-1, with Councilman Cecil Owenby, who said that was too high, voting against.

By that time, hot dog stand owner Lisa Miller had already been granted a license -- at the $100 rate -- to operate her cart at the gazebo park on Main Street, just a few feet away from the entrance to Ornberg's coffee shop.

In the days following the rate increase, The McDowell News reported that neighboring cities charge far less to operate carts, although the rules that govern where they can set up are different. A license in Morganton costs $100 per year; in Forest City, no fee; and in Rutherfordton a license to operate a mobile food cart costs $235 per year. The paper also reported that established brick-and-mortar eateries paid far less that $1,200 to operate their businesses. Fees paid by established restaurants ranged from $25 to $137.50 per year.

Lisa Miller told the paper's staff that she was getting a lot of support and encouragement from the public. She had been operating her cart in front of the Exxon filling station at the intersection of N.C. 226 and I-40 for nearly a year at that time. She said that like any merchant, her business had many other expenses associated with it beyond a license fee.

"I don't know why (Ornburg) would see me as competition," she said. "I don't even sell coffee. This cart is only approved for hot dogs and sausages." She said the objections he raised at the council meeting – that the $100-per-year license fee was unfair in light of the high rent he must pay – made no sense.

"He acts like that's all I have to pay," she said. Her cart cost $2,500. The propane and supplies and dozens of other costs must be paid regularly. She agreed with Ornberg that he had to provide conveniences like restrooms that she did not, but said those were attractions to customers, attractions she could not offer.

Her husband, Will Crawford, said businessmen should focus on improving their own businesses, instead of trying to shut others down.

"If a hot dog stand is gonna put them out of business," he said, "they need to just close their doors."

Comments posted at www.mcdowellnews.com were overwhelmingly in favor of Miller and the original $100 fee. The McDowell News asked council members if it might be time to do away with the privilege licenses altogether. Many answered that that idea was on the table, with Clark calling the revenues generated by those fees "negligible." Councilman Lloyd Cuthbertson defended the fees, saying they generated thousands of dollars a year and, while that is not much in a city budget, the city had to protect its revenue sources in a recession.

Little said plainly that mistakes had been made.

"The perspective gained by reading (Miller's comments) was really helpful," he said. "I gained the perspective that there is a huge gap between established businesses and new businesses.

"It makes me want to start over again, frankly," Little added.

He lamented that, although the matter was discussed in council a number of times and was reported in The McDowell News several times, the public remained silent until the council had acted.

"We've had very sharp barbs thrown in our direction," he said. "We have tried to listen and be responsive to people's ideas and needs."

In a letter to the editor, Bruce Brown said he agreed that $1,200 a year would make it difficult for new businesses to establish themselves, and suggested breaking the fee up into monthly $100 payments.

Ornberg, in a McDowell News interview, said he did not feel that a hot dog cart represented a threat to the prosperity of his business. His concern was that the council took what he saw as a hasty and ill-informed decision without input from the business community.

"The source of my frustration," he said, "is the failure of the city to implement good plan after good plan that has been handed to them."

In October, the council reversed the fee increase, returning the license to operate mobile food carts to just $100 per year. Then-Councilman Mike Edwards voted against the fee decrease, saying it was not a big issue and that returning the fee to $100 would be "flip-flopping."

Cuthbertson said he hoped that would be the end of it.

"I want to put the (issue) to rest," he stated, "I am tired of hearing about it."

Little said he hoped the decision to return to a $100 fee was the right one for everyone. He said it was the job of council to revisit an issue as many times as necessary to create the best business environment and level playing field for all. He hoped the public attention would herald a new era of community involvement in local issues.

"It has captured the imagination of the public," said Little. "I have not seen one single issue get this much attention since I don't know when."

Miller's hot dog cart became a regular feature at the gazebo park. On her first day operating in that location, lines formed to sample her products. Edwards said he and City Manager Bob Boyette had had a foot race to get in line, adding that he also stopped in at Crooked Door to enjoy a cup of coffee and ensure there were no hard feelings.

In the warmth of earlier December, the cart was still operating. No Main Street eatery has had to close its doors since Miller joined the downtown business community.